Former Hungarian President Advises Supporting Newlyweds with Housing Funds as a Solution to South Korea's Low Birthrate Problem

"South Korea's Low Birthrate Issue Must Be Solved by the Government"

Nov?k Katalin, the first female president of Hungary and the former president who successfully implemented policies to overcome ultra-low birth rates, advised supporting newlywed couples with housing funds as a solution to South Korea's low birthrate problem.

Photo 1: Former Hungarian President Novak Kertelin and People Power Party members Na Kyung-won, Kim Mi-ae, and Kim Jae-seop are attending a special lecture on "Sharing Policy Experiences to Solve the Low Birthrate Issue" held at the National Assembly Members' Office Building in Yeouido, Seoul on the 11th, taking a commemorative photo. [Photo by Kim Mi-ae, Office of People Power Party Member]

On the 11th, former President Nov?k attended a special lecture titled “Sharing Policy Experiences to Solve the Low Birthrate Problem,” hosted by the People Power Party's Yakja Donghaeng Special Committee (Chairperson Rep. Kim Mi-ae), the 2040 Sunpoong Forum, and the Korea-Hungary Friendship Association at the National Assembly Members' Office Building in Yeouido, Seoul. She stated, “South Korea's low birthrate issue could lead to a demographic extinction crisis, so if one worries about the country's future, it is a problem that the government must solve.”

Former Hungarian President Novak Kertelin, along with People Power Party members Na Kyung-won, Kim Mi-ae, and Kim Jae-seop, attended a special lecture on "Sharing Policy Experiences to Address the Low Birthrate Issue" held at the National Assembly Members' Office Building in Yeouido, Seoul, on the 11th, and took a commemorative photo. Photo by Moon Hye-won

Until 2011, Hungary was known as a low birthrate country, recording a historic low fertility rate of 1.23. However, by introducing bold marriage promotion and childbirth policies such as providing housing loans to newlywed couples and offering interest and principal reductions upon childbirth, Hungary was able to raise its fertility rate to 1.52 in 2022. Former President Nov?k explained, “From 2010 to 2022, we more than doubled the financial resources for family policies, investing 6.2% of the Gross Domestic Product (GDP).”

She added, “These policy measures specifically apply from the 13th week of pregnancy,” and include “family tax benefits, childbirth grants, tax exemptions for mothers under 30, family housing subsidies, and student loan waivers.”

Hungary's fertility rate increased from 1.25 in 2010 to 1.52 in 2022. The number of marriages in 2022 exceeded 64,000, marking the highest level since the 1980s. Divorce rates decreased, and the abortion rate hit a historic low of 21,800 cases in 2021.

Photo 2: Former Hungarian President Novak Kertlin is attending a special lecture on "Sharing Policy Experiences to Solve the Low Birthrate Issue" held on the 11th at the National Assembly Members' Office Building Grand Conference Room in Yeouido, Seoul. [Photo by Mi-ae Kim, Office of the People Power Party Lawmaker]

Former Hungarian President Novak Kertelin is giving a lecture at the special lecture on "Sharing Policy Experiences to Solve the Low Birthrate Problem" held at the National Assembly Members' Office Building in Yeouido, Seoul on the 11th. Photo by Moon Hyewon

Former President Nov?k emphasized, “I have lived as a career woman raising three children with my husband while supporting my family,” and added, “While having children is important, we also need to consider why young couples decide not to have children.”

She analyzed, “The low birthrate problem persists in developed countries. The younger generation prefers to build their careers, enjoy holidays, or acquire better homes and cars rather than setting family formation as a life goal.” She continued, “Raising children is challenging. Unexpected situations can always arise, and it becomes even harder if nursing care is needed. If couples divorce, they may face financial hardship, so I understand why some choose not to have children.”

She further stressed, “Young couples sometimes decide not to have children or to have only one if they believe they cannot provide adequate educational environments. Policies that can instill trust in young couples that private education can be well supported are necessary.”

Photo 3: On the 11th, Kim Mi-ae, a member of the People Power Party who hosted a special lecture titled 'Sharing Policy Experiences to Solve the Low Birthrate Issue' invited by former Hungarian President Novak Kertelin, is attending a discussion in the main conference room of the National Assembly Members' Office Building in Yeouido, Seoul. [Photo by Kim Mi-ae, Office of the People Power Party Member]

Rep. Kim Mi-ae of the People Power Party, who invited former President Nov?k to this special lecture, said, “Various policies have been tried worldwide to address the low birthrate issue, and Hungary has attracted much attention for its radical childbirth support policies. Since Hungary's policies have objectively contributed to increasing birthrates, it is necessary to examine what implications they hold for us.”

As chairperson of the People Power Party's Yakja Donghaeng Special Committee, Rep. Kim plans to develop policies to respond to the low birthrate issue through this lecture. She also previously served as chairperson of the Low Birthrate Countermeasures Special Committee in the 21st National Assembly.

The special lecture was also attended by senior ruling party members, including National Assembly Vice Speaker Joo Ho-young, People Power Party Floor Leader Choo Kyung-ho, and Rep. Na Kyung-won. In her greeting, Rep. Na said, “The low birthrate problem cannot be solved by money alone, but it cannot be solved without money either,” emphasizing the need to seek comprehensive solutions according to life stages. Rep. Na, who served as the inaugural vice chairperson of the Presidential Committee on Ageing Society and Population Policy under the Yoon Seok-yeol administration, has long advocated for adopting the Hungarian model for low birthrate policies. On the 2nd, People Power Party leader Han Dong-hoon stressed the passage of legislation to overcome the low birthrate issue during a ruling-opposition leaders' meeting.